b. Suppose that only two goods are produced in an economy. The prices in 2020 and 2021 are given in the following table: 2020 2021 Price of apples 2£ 2.1£ Price of laptops 700£ 750£ The typical basket of the country consists in the consumption of 10,000,000 applies and 30,000 computers. Calculate the CPI of the economy in 2020 and 2021 and the inflation rate in 2021.

b. Suppose that only two goods are produced in an economy. The prices in 2020 and 2021 are given in the following table: 2020 2021 Price of apples 2£ 2.1£ Price of laptops 700£ 750£ The typical basket of the country consists in the consumption of 10,000,000 applies and 30,000 computers. Calculate the CPI of the economy in 2020 and 2021 and the inflation rate in 2021.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider an economy with only two goods: bread and wine. Let's say that, in 2008' the typical family bought four loaves of bread at $1.50 per loaf and two bottles of wine for $9 per bottle. In 2018, let's say bread cost $4.50 per loaf and wine cost $16 per bottle (fictitious prices). The CPI for 2018 (using 2008 as base year) is approximately ..... Select one: a. 110. b. 239. c. 195. d. 208.
The table sets out the CPI for the United States and for four regions of the United States in May 2008 and May 2009. In May 2009, the price level was highest in the OA. South OB. Midwest OC. West OD. Northeast Show Transcribed Text ✓ Region Midwest Northeast West South United States Between May 2008 and May 2009, the price level in the The fall in consumer prices was the smallest in the OA. Midwest and West; Northeast OB. Midwest and the South; Northeast OC. West and the South; Midwest 2008 207 230 221 210 217 OD. Northeast and the West; South OE. South and Northeast; Midwest 2009 203 228 218 207 214 fell by more than the U.S. average. Training
The table below applies to an economy with only two goods — hamburgers and hot dogs. The CPI basket consists of 4 hamburgers and 8 hot dogs. Year Price of hamburgers Price of hot dogs 2009 $5 $3 2010 $5.5 $3.3 2011 $5.61 $3.63 If the base year is 2009, then the consumer price index is _____ in 2011. Group of answer choices 108 105 110 117
None
In the year 2000, the CPI was 172.2 and the GDP deflator was 78.7. In 2019, the CPI had risen to 258.4 and the GDP deflator to 112.5. a. How much did prices increase from 2000 to 2019 according to the CPI and how much according to the GDP deflator? Why is there a difference? b. If the price of a 12oz can of Coke was $1.25 in 2000 and the price was $1.75 in 2019, did the real price of Coke go up, down, or stay the same? Explain your answer.
None
Economists in the Statistics Bureau decide to check the CPI substitution bias. To do so, they conduct a Consumer Expenditure Survey in both 2018 and 2019. The table shows the results of the survey. It shows the items that consumers buy and their prices. 2018 2019 Item Quantity Price Quantity Price The Statistics Bureau fixes the reference base year as 2018. Burgers 30 $1 35 $1 Chicken 35 $4 25 $6 Calculate the CPI in 2019 if the CPI basket contains the 2019 quantities. The CPI in 2019 if the CPI basket contains the 2019 quantities is >>> Answer to 1 decimal place. Question Viewer Enter your answer in the answer box. MacBook Air DII DD F11 F10 000 000 888 F9 80 F7 F8 F6 F5 F4 F3 esc F2 F1 & % ! @ 6 7 8 2 3 4 5 1 | P Y U Q W E R tab K 云 00 %24
In 1980 the price of microwave oven was $382 and CPI was 105. Today the price of a microwave oven is $266 and CPI is 242. What is the 1980 price of microwave oven measured in todays dollars? (Round to two decimal places.) Your Answer:
Suppose for Candyland the cost of a CPI basket is worth $500 in 2016, and the same basket is worth $600 in 2017. Answer the following questions a. Using 2016 as the base year, calculate the CPIs of 2016 and 2017, respectively. Then calculate the inflation rate between 2016 and 2017. Show steps. b. If a computer costs $1500 in 2016, using the CPIs you calculated in (a), what is the cost of this computer if measured in 2017 dollars? Show steps. Hint: the same computer should have the same real values in both years.
1. Calculating inflation using a simple price index.
Consider the simple economy that produces only three products. Use the information in the following table to calculate the (annual rate of inflation for 2020 as measured by the consumer price index (CPI). BASE YEAR (2010) 2019 2020 Price Price $10.00 2.00 Price $11.00 $16.20 240 2.45 15.00 15.00 14:00 Product Haircuts Hamburgers Movies Quantity 3 8 7 Using the information in the table, the CPI for 2019, with 2010 as the base year, is (Enter your response rounded to one decimal place)
The CPI in 2021 equals _______. A. 51.4 B. 100.0 C. 74.0 D. 194.7 Screenshotted